Egypt recorded a primary surplus of EGP 330 billion in H1 2024/25, driven by a 38.4% increase in tax revenues, the government emphasized fiscal discipline, increased spending on healthcare and education, and highlighted its commitment to the IMF’s reform program and reducing budget sector debt.
In the first half of the fiscal year 2024/25, Egypt achieved a primary surplus of EGP 330 billion, as announced by Minister of Finance Ahmed Kouchouk. This marks the country’s highest primary surplus to date, driven by a substantial 38.4% increase in tax revenues compared to the previous year, representing the strongest growth in several years.
Prime Minister Mostafa Madbouly convened with Minister Kouchouk to assess key financial indicators from July 2024 to February 2025. The Prime Minister reiterated the government’s dedication to maintaining financial discipline while simultaneously increasing investments in vital sectors such as healthcare and education, along with enhanced funding for social protection initiatives.
Kouchouk elaborated that the government has prioritized better debt management through the optimized distribution of interest payment burdens and strict control over treasury-funded investments. He also noted a 29% growth in healthcare expenditures and a 24% rise in education spending from the previous fiscal year, alongside a remarkable 44% increase in subsidies, grants, and social benefits.
The discussions also addressed the government’s strategic objectives for the fiscal year 2025-2026, which focus on stimulating economic growth, creating employment opportunities, and supporting key sectors such as tourism and technology. The government’s goal is to uphold financial stability while adhering to fiscal targets and reducing the debt burden, coupled with increased investments in social programs.
Kouchouk provided insights on Egypt’s progress under the International Monetary Fund (IMF) reform program, highlighting the approval of the fourth tranche and preparations for the fifth review. He also proposed strategies aimed at reducing the budget sector’s debt in the upcoming fiscal year.
In conclusion, Egypt’s achievement of a primary surplus of EGP 330 billion in the first half of 2024/25 is indicative of strong financial management and a substantial rise in tax revenues. The government’s focus on fiscal discipline, increased spending in crucial sectors, and adherence to the IMF reform program aims to sustain economic growth and financial stability in the future.
Original Source: www.dailynewsegypt.com
